Azerbaijan - Living Wages, October 2017. Per Month in AZN

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living Survey to calculate Living Wage for 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Azerbaijanian Manat)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 270 350 270 350 67 88
Housing 300 350 300 350 200 250
Transport 20 27 20 27 10 14
Health 50 100 50 100 13 25
Education 50 200 50 200 0 0
Other costs 34 51 34 51 14 19
Total Expenditure 724 1078 724 1078 304 396
Net Living Wage 426 634 402 599 304 396
Gross Living Wage 505 755 480 715 360 470

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Azerbaijanian Manat)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of most common family household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2 children, 1.7 working) 505 755
Standard family (two parents + 2 children, 1.8 working) 480 715
Two parents and two children, 2 working 430 640
Two parents and two children, 1.5 working 575 855
Two parents and two children, 1 working 860 1290
Two parents and three children, 1.7 working 555 820
Two parents and four children, 1.7 working 605 885
Single-adult without children, 1 working 360 470

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Azerbaijanian Manat)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 105 105 105 105 105 105 105 105
Living Wage - Single Adult . . . . . . 360 470
Living Wage - Typical Family . . . . . . 505 755
Real wage of low-skilled worker 270 535 230 415 235 425 200 370
Real wage of medium-skilled worker 360 605 370 570 375 580 420 650
Real wage of high-skilled worker 340 590 370 590 375 600 405 650

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.

 

Food basket and food prices in Azerbaijanian Manat

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 439 1201 .6 .8
Rice 4 15 .9 1
Meat (beef, pork, poultry) 65 126 3.8 7
Oils (soyabean, olive, palm) 3 29 . .
Sugar (Raw Equivalent) 34 127 1.1 1.2
Maize and products 26 71 .4 .4
Milk - Excluding Butter 299 169 1 1.2
Vegetables, Other 201 41 1 2
Potatoes and products 145 97 1 1
Butter, Ghee 6 47 6 7
Groundnuts (Shelled Eq) 7 21 8 8
Pulses, Other and products 0 0 3 3.2
Egg (price per 10 eggs) 16 22 1 1.2
Sunflowerseed Oil 3 23 . .
Fish products 4 3 4 4
Beer 109 53 2 4.8
Sweeteners, Other 2 4 1.1 1.2
Beans 2 6 2 2
Bananas 2 1 2 2.5
Apples and products 28 13 .5 .8
Tomatoes and products 95 17 2 2
Onions 32 10 .6 .7
Oranges, Mandarines 8 2 1.5 2
Roots, Other 0 0 .9 1
Seeds and kernels 0 0 3 4
Wine 0 1 2.7 2.7
Cream 0 0 2 4
Olives (including preserved) 0 0 6 8
Honey 1 1 13 13.5
Citrus, Other 1 0 1.6 3.5
Lemons, Limes and products 1 0 1 2.5
Tea (including mate) 0 0 2.2 3.6
Grapefruit and products 0 0 2 2
Coffee and products 1 0 2 2

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time. 

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

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